Senior Editor

Jerry Siebenmark

Spirit AeroSystems, a Tier I supplier to Airbus and Boeing, will acquire for just more than $1 billion select assets of Bombardier’s aerostructures and aftermarket services business in a deal that will give it more manufacturing content on Airbus aircraft as well as regional and business jets, the Wichita-based company announced Thursday. Financial terms of the deal call for Spirit to pay $500 million in cash and assume $300 million in net pension liabilities and $290 million of government grant repayment obligations. “The acquisition of the Bombardier assets is a transformative deal for Spirit, aligning perfectly with our stated strategic goals of capturing more Airbus business, expanding our low-cost country footprint, and scaling our aftermarket business,” Spirit president and CEO Tom Gentile said on a third-quarter earnings call.

 


The acquisition includes operations at three sites—Belfast, Northern Ireland (Short Brothers); Casablanca, Morocco; and Dallas—employing 4,000 people and encompassing 3.4 million sq ft. Combined, those operations produce composite and metallic wing components, nacelles, fuselages, and tail assemblies as well as “high-value” mechanical assemblies made of aluminum, titanium, and steel.&nbsp;

 


Of particular note is Belfast’s production of the Airbus A220 composite wing—the backlog of which stands at&nbsp;435 units—and Bombardier business and regional jet work, including that on Global, Challenger, Learjet, and CRJ models. “We think [the A220 work] will give us a great head start in terms of future wing programs with Airbus,” Gentile said.

 


He also noted the Belfast site recently won new work on the thrust reversers for A320neos equipped with the Pratt &amp; Whitney PW1100G geared turbofan. Meanwhile, significant MRO capabilities in Belfast and Dallas with “tremendous” relationships with airlines globally will more than double Spirit’s aftermarket business. “This is really one of the hidden gems of the acquisition,” Gentile added.

 


The parties expect the deal to close in the first half of 2020, following regulatory approval. Spirit expects revenue from the Bombardier operations it has agreed to acquire&nbsp;to total $1 billion in 2019.

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